Phillips 66 Partners to buy rail, pipeline assets for $340M

Phillips 66 Partners agreed to acquire two crude oil rail-unloading facilities and two pipelines from Phillips 66 for a combined total of $340 million. Phillips 66 Partners will acquire the newly constructed Bayway rail-unloading facility located at Phillips 66’s Bayway refinery in New Jersey and the Ferndale rail-unloading facility at Phillips 66’s Ferndale, Wash., refinery. Phillips 66 Partners will also acquire the Cross-Channel Connector Pipeline assets, which include two refined products pipelines that run between the partnership’s Pasadena, Texas, terminal and Kinder Morgan’s Pasadena terminal.

Phillips 66 Partners plans to use the Cross-Channel Pipeline assets to develop a $12.4 million project to provide shippers access from its Pasadena terminal to third-party systems located north of the Houston Ship Channel.

The two firms will enter into 10-year terminal services agreements for 100% of the available capacity of the rail-unloading facilities.

The acquisition is expected to close in December.

Phillips 66 Partners earlier this year acquired the 681-mile Gold Line System and two refinery-grade propylene storage spheres from Phillips 66 for $700 million.